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tv   Varney Company  FOX Business  January 11, 2019 9:00am-12:00pm EST

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for the -- for now they have subsidy set to bailout farmers bad stuff. >> steve lindsay robert so great to see you and we were going to talk that jeff bezos divorce we can't even talk about it stuart varney. [laughter] stuart: that's a remarkable segue if ever i saw one. happy friday. [laughter] good morning dagen and good morning everybody. it sure look like the president is close to an emergency declaration to get the wall built and the government reopened. he wept to the border to see the the situation firsthand, he told sean hannity he has the absolute right to declare an emergency and that he probably would if a democrats continue to refuse to negotiate. he may get more money from outside congress. administration may tap into cash that marks hurricane relief in puerto rico on wildlife damage in california. another big migrant caravan is gathering, and the president convenes a border security round
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table in the white house today. this is a fluid situation expect developments during our show is to the market four straight day of gains back to the 24,000 level. this morning we will open just a little lower. dow off a about 60. s&p down 8. nasdaq down 27, no big drops at the opening bell. big news from am apple they're working on a new cheap, iphone that's interesting they've had trouble selling the existing cheaper model. now another one. could be a real shift in apple's approach to iphone sales. it tried to maintain premium prices now they're going the other way. by the way, a chinese company is out with a 150 dollar smart phone and just wait until you hear about the democrats new multitrillion dollar tax and spend green new deal. got the story. "varney & company" is about to begin. ♪
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>> we are the absolute right to declare a national emergency and this security stuff. this is a national emergency. if you don't have a barrier whethers it's a steel barrier or concrete wall substantial and strong. you never going to solve this problem or solve it. >> that was the president on hannity last night talking about emergency funding for the southern wall. let's go straight to black burman at white house. blake there are some of the president's advisors now telling him i believe go easy. cool it on emergency -- the declaration of emergency. is a that correct? >> contentious how the president will navigate this one stiewrt. we heard from president trump yesterday say that there are various mechanism it is that could pay for the border wall should he declare a national emergency. we have long thought that one of those so-called mechanisms would be by taying the military
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construction budget for fiscal year 2019. it is a north of ten billion dollars but fox is also learned that the white house asked army corps of engineers to look into whether or not to divert money from disaster relief funding for last year to build the wall. there's some 13.9 billion dollarss that potentially that they could shift over from disaster reare leaf over to the wall. the governor of puerto rico is out today saying do not do that. do not use those funds for the wall. again, this would only be if the president declares a national emergency. the president says he wants to work with congress first. but if it is apparent that congress can't get a deal then he would go that rout also keep in mind stuart if he were to do this, you could set the stop watch for when the lawsuits qowld start to come in. it would probably be a matter of minutes, into hours certainly not days into weeks. [laughter] >> you've got that right all
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right blake thank you very much sir switching gears let's get to your money where is this market going to open this morning, ever so slightly lower that follows four days of very nice gains. joinings now market watcher david nicks last, now it seems we're really all looking towards a profit report that come out next week. i've seen a downgrade on these expectations. if from an expectation of 16% profit gains to about 12%. this going to be a problem? >> stuart thanks for having it is an honor to be your show most positive catalyst is that xpgs are lower because when expectations are lower, the surprises in companies earnings are really what can move markets. so i would actually think we're in a much better position with companies lowering guidance because i don't think earnings story has changed much. stuart you've talked so many times about return to prosperity in this u.s. economy because economy is doing great. i think that's going to show up in earnings so i think it is
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earnings surprises as earnings start to report that i think will push this market forward one of the main catalyst i see over next couple of weeks. >> you think we can keep going up because we have four day of nice gains. do we keep going up? >> these levels are important yesterday the 80 to s&p is very important stuart if we can hold these levels, i think we'll retrace to highs that we with saw last october. if we can't hold levels today, i wouldn't be surprised if we trace down to christmas eve lows but fundamentally and technically speaking, the markets are poised to do well. but again, there's a few catalysts it is that are leading to that. if we get a trade deal, which i think is eminent i think you can see the markets push another 10% higher getting close to that deadline. >> we with like the sound of that stay there for a second david i want to deal with apple for a moment. they are planning another cheaper version of the iphone tell me more about this. >> so struggling x star remember are lcd, the display cheap or
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iphones that part of the release of september, not doing well for apple, in fact, as achilles' heel in me revamp of release of iphones they're keeping lcd model regardless they sayen plays could change this is for 2020 but cheaper iphones has not worked for apple xr are is struggling fc in 2013 struggles as well. but there i would say that a is in a difficult position because some say selling a thousand dollar handset in emerging economies with low incomes has also been difficult for apple in in recent year. but then you know there are premium brand as well with so how do you manage the two? >> low price alternative for those emerging market customers i guess. >> does not the work once again. and led provides better con tration. >> okay good enough. david come back in please. they -- they do you own a a pl by any chance? you've got a piece of that?
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>> you know, i don't we actually shorted a physical a few months ago. but -- i don't think apple is a buyer right now they're not innovating the most exciting there might be three cameras i think after the second camera on a phone you have diminishing returns for buyers but you know there's a loyal customer base for apple but i think that the -- phone market is a mature market. apple has to come up with something to innovate in order to see the stock retrace back toes i highs so for right now apple is not a buy for me. >> david nicholas thank you for joining us this friday morning always appreciate it. see you again soon. thank you. okay. check out general motors up big after it raised its forecast for this year 2019 a gm also expects to start larging all new family vehicles in china this year. followed by south america and mexico. the stock is up 6% this morning. that's a nice gain.
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growing number of democrats considering run in 2020. have signaled support for the sweeping green new deal cl you may have pushed by congresswoman alexandria cortez and other liberal members of congress. david mcen torn is with us with the club for growth. now, this -- this to me this green new deal is a massive tax and spend program. i know you can destroy it as being unaffordable and irrelevant. but you know, it's going to be a atrablghtive to a lot of voters because it will give them free money. what do you say to that? >> you know, stuart yes like much of the progressive plans it would be a disaster for the comig and put us into a permanent recession i think. even if you did the 70% tax increase that one of the big proponents the the new member of cortes wants to do that's barely pay for 100 or i'm sorry one
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tenth of it so -- it doesn't work but it's appealing it is like free college it sounds good if you want to get -- go to college. but the reality is it's a disaster for society. >> well i raise issue because senator elizabeth warren supports this deal. senator cory booker has endorsed it senator bernie sanders all over it and thoroughly supports it and beto o'rourke is supportive of the concept but i don't think we can dismiss it out of hand for something that will never happen. you wouldn't do that would you david? >> no we have to take it seriously and we have to educate american people what's behind the label. label sounds great we're all for the environment. green plan, but behind it is massive unemployment. huge tax increases, a destruction of the oil and energy industry in america, middle america, the switch from democrat to trump, the famous blue wall would be put out of business with this plan. so i hope that in in democrats p
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into the pool and go to that extreme left to ensure republicans win the next election. >> the government has been shutdown now over 20 daysing up it is 21 day as a of right now. is that -- tell me is that effecting growth? that much -- >> no. i don't think so. because effectively everybody knows that the salaries will be fade after the government opens back up. the money will come back into the economy. and frankly what we're seeing is -- the part of the government that isn't working really isn't needed for most people. it doesn't have a big effect. this is -- stuart really a power play between the president and nancy pelosi and schumer who want to take away his ability to lead. and i think he'ses smart to say i'm not going to give into you. i've got upper hand american people are with me. they want a secure border, and want to deal request this crisis, and you're just playing politics. >> got it david thanks for joining us. see you again real soon. >> great to see you. okay friday morning let's get
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back to market how do we open remember four straight day of gain up well with over 1200 points for the doug and down about 60 at the opening bell. there are new reports that amazon is about to make a big push into the video becaming industry. they're thinking of launching game streaming service it would kind of like a netflix for video games. there's more on amazon even though stock is down this morning premarket. they're reportedly thinking that taking over those vacant sears stores. and turning them into whole food stores. not a bad idea. details coming up. and something a little different for you. bradley tusk the man who helped bring über to new york city. he wantses to get rid of voting machines and let you use your cell phone to vote in national elections. you know i can see a few problems there. can't you? we're going to ask bradley about it just a moment from now. (ding) hey, who are you? oh, hey jeff, i'm a car thief...
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special guest this morning, with and wait a second i'm doing amazon is this is interesting. because -- amazon may take over what some sears stores it shall making it into whole food store. cheap space could be going out sears shut down 123 stores k-mart in last three year, there's whole foods looks to expand this could be some cheap real estate that they could move into. whole foods itself has 470 stores nationwide which is just, you know, very small amount compared to its major grocery competitor but it is kind of a specialty store they go for aa fluent neighborhoods coastal cities. be interesting to see whether they broaden out their demographic with now i will say this is a report that is not confirmed by whole foods they haven't said for sure whether they're doing this but there's a lot of landlords out there they have empty real estate to deliver under two hours. >> okay would you buy organic food in a mall.
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okay meet the man who bought über uber that would be. looking so jet lag. i can't talk properly but name is bradley tusk he's guy ho brought über to new york city. actually made it legal nationwide here he is this is bradley tusk with a better idea up his sleeve. which is -- mobile wait, wait, wait you want to put -- instead of having to wait in line in the rain own a ran are come to tuesday and leave work, i want you to pull out your fen and securely over the block chain vote in election so that it is easy your for everyone to vote. >> now that's important securely over the block chain. >> that's only reason why this works. it is unhackable. and it is not just a theory we did in in west virginia election last year for deployed military from about 24 different counties they were able to vote often these are same who put their lives on line to defend our right to vote and mail-in ballot
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shows up from kandahar in the trash so they were frustrated that so we were able to bring them funding to offer to deemployed military they came back clean and standing around country. >> you say we. this is out of my foundation so luckily, thanks to my work with über, i've got excess cash and this is a cause i care about so i funded the state of west virginia cost to administer elections. >> so wait a minute not everybody in america has a smartphone and -- >> you know it is getting pretty close estimates are between 78 and 95% so i wouldn't advocate. was it west virginia i think -- >> you've got your trial run you don't think it could be in place for 2020 here's how i look it my kids are 12 and by time they're voting age i would like to see this be a reality and if
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you were to say you couldn't do something as fundamental as loading on your phone they wouldn't understand that for a second and think that's absurd. so i want to get it a point where by the time i've done it in half a dozen to 15 different jurisdiction to prove that it is safe prove that it works and then take it -- >> you're not making money out of this. >> this is totally -- the politicians that you spoken to -- are they in favor of this? >> depends. a lot of them are not. because they have figured out how to gain system and get elected, and last thing is to easier to all of a sudden lose their job. right so they like things the way they are. but ultimately if uh-uh you look at probably everything i've been talking about with the rest of the day with shutdown everything else the things the way they are don't work so we have to have a way to get more peel voting because only if you assume that politicians reflect will of the people who put them in office it is small group of peel in left and right vote then that's who is bid ling they do if everyone votes then that's what they do. >> you have a shot do you think
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at using your system whatever on whatever it is called by 2024 it shall a shot. i think that we'll start to see in 2019 wish and see elections around the u.s. then i think you'll see gubernatorial mayoral senate races in 2020. and then it would be great if we have place like 2024. >> bradley a man of original ideas good stuff thank you very much for being us. look at future this is friday morning where do we open in about one or 10 minutes time we're down about about 70 for dow industrials. fda food and drug administration suspending routine food safety inspections because of the shutdown. how big a threat is that? to the safety of our food supply chain? doc siegel is with us and he'll answer the question after this. now i'm thinking...i'd like to retire early.
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food and drug administration has slowed safety inspections because of the government shutdown but i think we have breaking news on this. and our own doc seeing l fox news cor correspondent has had the news. bringing back 150 employees next week to do high risk are inspections that's 5 facilities they do most of the food in this country is actually inspected on
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state and local levels but that offers real advice that's important soothe market can get advice fda is responsible for produce and fish usda has meat and produce and fish and eggs but hold on a second. cheese perishable cheese produce, fish. if it is not inspected by fda can it be sold? >> yes. it can, and it is in stores but -- >> yeah. even without this. it can be sold. but we're talking about 48,000 illnesses per year that come from food born illness. i don't expect that to change much. i don't think that this lack of oversight is going to lead to a lot more people getting sick especially with fda being on ball here bringing back some employees next week. long-term, this could have a problem. if this went on for weeks and months, it could be a problem because look we already seeing outbreaks in lettuce right we're seeing romaine having a problem hard to track these things from the ground to the fork it is hard to do that. >> okay.
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but they're bringing back how many? 150? >> no. no they do 150 employees are coming to do high risk inspections ones that are most perishable. i guess that's good news? >> very good news i heard that from the doctor this morning. >> where do they get the money from this? >> that's a good question because tear really having a problem with that and a struggling and people are doing a lot for free. usda is continuing to inspect meat and poultry and cheese for free. these workers are working or for free. so i don't know where the 150 get paid? >> so we don't have a huge problem with food safety at this point? >> no? >> not at this point. i don't like it. again, you know again let me change that answer. change a the answer -- here's my change. >> go. we already have a problem with this. i told you 48,000 people getting success a year 3,000 dying with all of the inspections in the world. plenty of problems. but no real additional problem. >> okay. doctor thank you very much
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indeed we open the market in four and a half nines we'll be down about 70 point. and we'll take you to wall street for the opening bell this friday morning after this.
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all right 20 seconds to go and we'll open this market it has been a terrific week for the market thus far.
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of course we've got monday, tuesday, wednesday, thursday dow went up ever single day i do believe we're up every day that 1200 point higher, and now we're opening up on a friday morning but we do expect a decline. not a huge selloff but drop of maybe 80, 90 points as of last check okay we're up, running and initial report is we're down 60. down 50. obvious not all of the dow stocks have opened yet when they do, you might get a more clear picture. but we've opened on downside it is in the a major l means off one-third of one percent that's 80 point as we speak. move on to the s&p 500, now okay now we're down 100 on the dow. and we're down a half percentage point on s&p. a similar drop to the dow. how about the nays nasdaq to tell us where the tech stocks are going, that's down even more .6% or 41 points so we've got a downside move of about a half to
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two-thirds of one percent on the stock market thus far. and a tenure treasury yield holding right there at 2.70%. the big tech names where are they in first minute of business all down. facebook, with amy dison apple alphabet microsoft all on downside no huge loss for any of them but they're all down. >> yep. david dietz is here. jamie cox is leer so too ashley webster and suzanne lee. jamie to you first if i make a broad statement that fed has calmed the market would you agree with that? [laughter] >> i would. it was refreshing to see jay powell in economics club in d.c. yesterday sort of, you know, nice to see a fed chairman who is human instead of robotic people that we've seen over past couple of decades and what he said yesterday is basically the fed is going to be patient and the cpi data that came out today reenforces it and not going to see much of fed for first half f the year they're on the sidelines market can put that aside as a problem for a while so i would say that we don't
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have to worry about that. we're focused on tariff and trade that is the story -- >> i couldn't agree with other guests more. plus, of course, over in china we're also seeing monetary easing, they have cut the discount rates for the banks so basically, you have two of your largest economies in the world are starting to back off these rate hikeses and positive -- >> expectations have dipped into 19% probability for one or more this year. compare that to 45% a month ago, and yes i would say jerome powell changed mind center in why interest rates are going this year. >> yeah focus goes back to china and getting things done and profit reports which is we get into next week. the beginning of it and the guidance for the rest are of the year looking ahead which will be certainly move marketses. >> we have to understand this is no long per a double digit earnings growth story anymore. double digit in 2018 for first quarter, and analysts are say we're going to grow profits will only grow 3%.
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>> who says that? >> well with average of analyst surveyed yeah. >> 3%. 3% for first quarter because right now the report cards are for fourth quarter which will be okay great compared to 2017 and in 20109 first quarter which is what markets do by the way they look ahead. smg i'm sorry i didn't know that. i'll do my homework more in the future. okay all right pif to start this morning which is rallying big time you might be surprised at it. it is general motors look at that it is up 6% they've raise ared their guidance that always helps. and they're expanding into china with -- their full fleet. all right so david, what is general motors doing that ford is not doing? >> well i think there's two things why we prefer gm over ford gm is leading the brigade into electric vehicle market they have a strategic partnership with honda announced to electrify cat catholic
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cadillac focusing on larger vehicles, and ting that's the difference. >> what's this about an a electric cadillac they are going to go ahead with that. >> their brand is leading brand in electric field. >> everybody is getting electrics but where do you recharge your car? >> that has been the question where is infrastructure for this? >> you can do 300 mile range on a charge these days right batteries are getting more sophisticated better technology. and we'll have more charging station supply and demand will meet up you would hope. >> another lesson in economics and markets from suzanne thank you very much. >> 10 1 -- [laughter] let's move on to apple they're planning another cheaper version of the ieg phone. back to you susan on cheap aye iphone cheapest model in three iphone release in september didn't work out fur them, in fact, the achilles' heel when it comes to a l but they're sticking with cheaper lcd
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screens believe it or not. now they said these plans could change this is for the release in 2020 and you know, we've had cheap iphones before like the 5c and 2013 along with sr they just don't work as i mention to you because apple keep premium brand but trying to sell emerging market for income or lower. >> i have apple 153 a share as of right now. actually it is pup 4% this week. jamie come back in again. would you buy a l at 153? >> no. i think apple has a little bit more trouble ahead of it. i mean the factor that apple has sold of iphone for such a long time it is difficult to inno elevate on it and if you go to apple store right now you see the same thing just in different form in colors it is just not a huge reason to try to upgrade your phone and now with interest rates higher cost of finance these things is much high per so i think that consumer e piece of iphone story is just not there you couple that with problems of chip, you know, there's some issue there is too. i don't think that apple is the
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best place to put your money at this point ting that's the wrong choice. >> quick point here suzanne straighten me out on this one with am i right in say there's a chinese company -- i've got it. largest startup in the world at one point. >> but now they've come out with a 150 dollar phone smartphone. >> but that has been their tactic china again a lot of loyal players squeezed out a l with cheaper smartphone and they have a great successful chinese smartphone player. their ipo is down 30% in 2018. but it is a competitive phone 150 bucks. >> but a paid environment. i'll buy shares that jamie is selling there because i think at 12 times apple you buy a l here. 12 timings earning down last month that's too much. it outsells 96% of the fortunate 500 companies at the end of the day we're not getting rid of iphones still best thing --
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should they with with all of the cash that's sitting on buy something to help push them forward innovation on a iphone fine twoment of the services. but is there something out there that apple could really drive forward with -- for purchase now anything out there? >> certainly, getting more into content and developing a streaming service -- some of the monthly subscription tieing it in with a l care and apple and so forth. i think will take their profits up to next level. >> do you think they'll buy back more shares because larger share hold percent including buffett and apple could take five to 10% of the oustanding shares in market to boost up the stock price? >> it is a combination they're going to be looking for ways to expand their empire and they're buying back shares that's what they've done for last decade that adds to the yield stuff from a buyer current level. >> nice 2% dividend yield i have to stop -- how about had amazon, netflix, microsoft -- yeah. microsoft, and a intel i'll keep
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you posted but thank you very much. looking pretty good. >> glad you said that jamie. let me move on to google they're face a lawsuit for alleged mishandling of a sexual misconduct case. okay let me give you details on this so it is a shareholder lawsuit filed in a court in california. so what they're asking for is three new independent board members on alphabet or ling goo to end dual class voting shares that means they want less for larry paige and cofounders of google and they want to call for executives to return their generous pay packages when they've been fired for sexual harassment allegations credible sexual harassment allegations like andy rubin of android and this is after the 20,000 employees who walked out on google campuses around world. >> i don't think stock is reacting to that particular lawsuit they're down 11 bucks in otherwise overall down day. and it is a down day check the big board we're down now 127 point that's about about about half percentage point and that's
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true across the board here. stocks down, most of the indicators half percent. from "the wall street journal," barnes & noble says it could cut its profit outlook by up to 10%. so why is the stock up 1.7%? i'm not sure about that one. we have black which is largest money manager in the world -- i declare -- over trillions of dollars they manage they're coming 500 jobs, amid all of the market ups an downs of late cutting 500 jobs and that stock is down one and a quarter percent. price of oil today where is it 51 dollars barrel that's down 1.5% and price of gas -- 2.24 per gallon on a national average basis up for the second day -- >> come on up it is a penny i don't like that. >> you stew -- you know -- [laughter] you don't. weaker holiday sales from some brick-and-mortar stores macy's
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kohl's, l brangdz, what does that tell you? >> well, i mean, i still think that these -- large brick-and-mortar retail reverse having trouble against the internet also consumers are going away from things and toward experiences. so if you're a brick-and-mortar retailers you don't have strong internet people are picking up at your store or make shopping fun, i think it is you have tough headwinds. >> close this out jamie cox a lot of people in our audience are now deciding where to put their 401(k) money is it stocks, boppedz is it cash a mixture of all three what's your advice for 2019 jamie cox? >> so i would be very defensive. stay away from cyclical stocks 401(k) as you want to be defensive with your allocation if you want to use target retirement funds probably a good time to do so. i would be very cautious on cyclical stock like financials and technology as we move further along in the year. so i think that if you have -- you buy bonds you need to be careful of credit risk at this
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point interest rate risk is not a problem. but if you bought high yield bonds you need to sell those those are issues as we move through the year. a lot of people took on debt while money was around. >> 9:40 eastern time that means we're up. david and jamie thank you very much indeed we appreciate you being here. check that big board, this is not quite the low of the day but almost down 128 points that's a half percentage point listen to this one. new york city mayor bill de blasio says the city has plenty of money it is just in the wrong hands. [laughter] mayor robin hood back you can bet we're going to deal with with that one. yes we do. and this could be a positive development in our trade talks with china. pi xi top trade guy planning to visit washington the high e level talks, we're on that one. could be positive more varney after this.
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low of this friday morning do you down .7%. down at 23,835 let's get to china trade president xi top trade aid is going to visit this country. i've been saying that is a positive. let's bring in curtis ellis former trump are campaign advisor is it a positive? >> shows sol progress has made over there in beijing. comien is very hungry for a deal. their economy is stalled. that top -- >> did you know that for a fact i know their economy is suffering i've got that but are they desperate and hungry or for a deal? >> chief economist for former chief economist for the agriculture ministry in china gave a speech -- which was immediately censored on chinese internet in which he gave an overview of the chinese economy. he said it is growing at best at
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1.6% and it may well be contracted bankruptcies are through the roof. over leveraged the financial sector, the banks are overleveraged shadow banking, and it is all a house of cards basically is picture he laid out. that is dramatic stuff. laid it out and then they censored it so you know, not a distribution. translation of feature is available on internet, and i know for a fact that one of the big financial houses -- just a couple of blockses from here they've having a meet about this speech yesterday with with all of their money management. >> so your position is that they are really hurting which gives us maximum leverage -- >> that's right are and top aid coming to this country i think it is next week -- that's the positive sign because he wouldn't be coming if he didn't have to. >> they took care of the easy stuff or at least laid ground work for easy stuff in beijing china will buy more soybeans and buy more natural gas and china
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will buy more wig its from us because it is a command economy but hard part is structural reforms in china will they stop cheating will they stop subsidies or abc and then -- how do we verify? right this is -- a paraphrase ronald reagan verify but verified because chinese has been making proms for 40 years. >> but see what i cannot see is both sides just walking away completely. no deal, we hate each other. not going to happen that is not going to to happen is it? >> let's remember, put this in perspective we have a prosperous economy before china. during the world otion we have a prosperous economy here in this country before richard nixon shook hands with richard in 1972 in beijing so we've got to get over this fixation that only way to prosperity is -- a deal with any cost. you can't go into a negotiation saying we need a deal at any cost. i mean that just is not a good way to negotiate.
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so -- at one point you have to ask yourself do you want a cheap iphone or do you want a country? >> good point. by the way, i think president trump has canceled the idea of going to the summit at the end of this month. i was hoping it would go over there and stick it to the elite and maybe have a meeting with xi xi as well. >> would have been a great photo op it is not going to happen. the fact that it was so easily cancel sod quickly canceled shows nothing serious was ever planned to be discussed there. but it would have been fun to watch and stick it -- >> i wanted to see that but it's not going to happen. curtis ellis thanks for joining us. thank you. all right now development in huawei case if i can put it that way poland detained a huawei executive susan what's that? >> arrest in vancouver right, waiting trial for extradition to the u.s., but this is a much lower level manage, in fact, a
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local sales director in poland but it goes back to u.s. swaying allies to use huawei network equipment gear because huawei has been alleged to be a signed for the chinese government so right now we have the u.s., we have new zealand australia those governments refusing to install and use huawei technologies for their tell comes to pan reportedly is considering this as well as canada and the u.k.. so again, this goes become to huawei, you know, is it a spying tool for the chinese government an u.s. and influence around world to say no to huawei. one of the biggest technology company in china. >> it is a largest network it is tell come equipment in china. employed tens of thousands, they have 93 billion dollars in revenue each year. huge company. so to restrict them is a big deal. their private company now check that dow because we're still down triple digits we're down 150 as we speak.
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that is let's see that's about two-thirds of one percent. amazon's move to queens new york. facing some opposition members of seattle city council, warning about the negatives of having an amazon headquarters in your backyard. they came over here to new york to tell us that. we're going to talk to an amazon testifieder after this. at humana, we believe great things are ahead of you when you start with healthy. and part of staying healthy means choosing the right medicare plan. humana
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this is the low of the day, down 184, three quarters of one percent downside 23/8 is where we are. seattle city council members visit with new york city, and they warned of the dangers of amazon which is coming to new york city. new headquarters building. julie samuels is with us tech new york city. now, amongst many of the things that the seattle guys said was -- you never going to recoup all that incentive that you've given to them to get them here in first place. i know you're in favor of amazon being here. respond to that. >> i mean i think we will recoup it the incentives are incentives they only happen had right money accrues to amazon when amazon brings job. and the job -- conditional thing. >> listen or there i think 6 different incentive program but almost all of them are conditional on jobs coming here and jobs bring taxes.
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so they actually will recoup i think this is actually a simple mass problem. >> that's a fair point to make how about housing because they're worried that, you know, the rentals will go straight up. the value of homes in the area go straight up. pricing out poem that's a valid concern. >> i totally agree that is absolutely a valid concern i would argue that new york city is doing a lot of work around affordable housing. they're working with amazon on that. but also the city is really dug in we have a affordable housing problem before amazon ever even announced it was coming to long island city across new york and i've been proud to see that new york city is doing a lot to shore up affordable housing acrossed five borough. you know what has not done down well is helicopter landing pad for jeff bezos i don't know whether he can afford it with a divorce but what do you think? >> well, about the helipad? >> i'm having a go at you. i can't say much about the
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helipad i think he needs a -- [laughter] maybe if i can get a ride sometimes i'll be excited -- what about -- >> listen they're already some of the the union really -- good friend alexandria cortez -- she's not happy about amazon because all of the folks coming in here and all of this money and they won't have unions. unions actually at least some of the unions support the deal. the unions builders, the -- folks who are doing construction, they're use union labor. i mean that's a huge deal those those -- is not just talk about this for everyone come on it is not just that amazon is hiring for but it is multiplier affect that includes those building. you know doing the actual work. all of the jobs in the neighborhood to grow because of amazon comeing here. and that run ares from janitorial to you know high end white collar jobs everything in between and much of that will be union labored new york is a
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union town whether you like it or not and amazon is coming to new york. it has not a union company. >> we'll see what happens have you had meeting with andrea cortez? >> are you going to? >> i hope so at some point. because they are new york tech and you'll be meeting -- we meet most elected official who is repght. >> can you play do you think? >> ask me after i'm eating -- [laughter] thank you very much for joining us my pleasure. thank you. now president trump he really called out some democrats before he he headed to texas to see border he says china is easier to negotiate with than schumer and pelosi. he might just have a point. my take, next. but i'm relentless too. mbc doesn't take a day off, and neither will i. i treat my mbc with everyday verzenio, the only one of its kind that
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>> as i find china, frankly, in many ways to be far who are
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honorable than crying chuck and nancy, i really do. i think that china is actually much easier to deal with than the opposition party. stuart: well, well, now we all heard that on this show yesterday. it came as quite a shock to hear the president say the chinese are more honorable negotiators than short schumer and speaker pelosi. provocative in the extreme. sharp-edged opinion from our sharp-edged president but does he have a point? consider this. the president was speaking as a negotiator. he had offered to negotiate to the with the democrats over the government shutdown and the border wall but schumer and pelosi had refused to negotiate. mr. pelosi said bluntly, she wouldn't give a dollar for the wall. that is intransigence. in contrast the chinese actively negotiating a trade deal. their top financial guy is coming here for high level talks next week. whether they act honorably or
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not remains to be seen but they are negotiating. schumer and pelosi are not. how about kim jong-un? north korea's vicious dictator? he is negotiating. there have been no nuke tests or missile launches since the summit in singapore. there may be a another summit soon. this is what our "art of the deal" president does, he negotiates deals. but of course it takes two sides to negotiate. let's be clear, democrats loathe this president. they are contemptuous. they can barely manage to sit down with him. no negotiating. is that honorable, when the government is shut down and the stream of illegals keeps coming? by the way, the president is still open to a deal that would avert a declaration of emergency. he hasn't pulled the trigger on that yet. pelosi and schumer could still cut a deal that would bring security to the border and give all those dreamers a real break, but for the sake of $5 billion they won't budge. they won't negotiate. where is the honor in that?
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the second hour of "varney & company" is about to begin. ♪ stuart: you heard what i had to say. let's bring in tammy bruce, independent women's voice president and a fox news contributor. >> and good morning. stuart: yes, good morning. i don't see any honor in the negotiating or non-negotiating position of nancy and assumer? >> exactly. how the chinese behave after the negotiations is not -- they don't operate honorably but they're actually negotiating as you have noted. there is a interesting governing making something work. now at the same time even though it does take two to negotiate the president continues to do so. every action he has taken including arguing about national emergency, what he has the power to do is sending signals to the other side, because they will lose in that regard.
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if they negotiate, they can actually get something like for the dreamers. stuart: exactly. >> something interest to them that is important but what they are proving they don't have interest in governing. all they said what is important to them is a fraud. otherwise they would engage to make this work. stuart: it is pure politics. they think they can win politically, taking a stand no wall at all. they think that is a political winner. do you think that is a miscalculation? >> it is. the problem, looks that they have that night when they wanted to contradict his address from the oval office is, was because they have never really had to negotiate before. this is a president who means business. before we have the unipart, like congress, everybody knew the end result would be, nothing would happen in the end no matter what they promised or negotiated on. with president trump he is is his own entity, he is serious. he represents the american people in a serious way.
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that is why they look kind of shell-shocked because they knew something was going to happen and they didn't know quite how to counter act it. stuart: i think this total refusal to negotiate, pushed the president to the point where he has to declare an emergency on the border. >> because there is an emergency on the border. normally the president would work with congress to solve that problem. when you have a congressional leaders who are refusing to assist in that regard, this is why the president has that power in the event something occurring needs to be addressed in that fashion and the other side will not negotiate with you. on one hand the president cares about the country. wants to find a solution. on the other hand the other side is looking for what they think is going to get them power politically with their base or with the media. and that is of course the american people can make a determination about what is going to best suit their interests. stuart: look, it is confirmed, there is another caravan, a
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really big caravan being assembled next week. it will make its way to the border. what would nancy pelosi and chuck schumer, what are they going to do when that caravan arrives? what would they do? >> well they will be doing nothing. this is why having a man of action in the white house is so key. that is just part of the emergency. a few weeks ago democrats, all of us were very upset about two children dying. people are leaving their homes ill with long-term diseases, hepatitis, the flu, tuberculosis, hiv, these are not diseases that develop overnight because now you've got california saying before, of course they already already implemented it, inviting people saying we'll give you free health care, if you get here, you're sick. this is emergency for people in south and central america, so they do take care of themselves, don't put themselves at risk for a border they are not going to come across. stuart: this problem is created
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i think by the sanctuary state of california. >> it is exactly. stuart: which invited more people to come. and now they're going to complain, because the president might take some wildfire damage money away from them and use it to build the wall. >> look, when you have got an, this new governor newsome, retell graphed, if you're ill, you're undocumented we will take care of you. that is not a coincidence that new york and california did that at the same time during this fight. it is an invitation. in the long run if calfornians are concerned about themselves and their families and the california budget, this in fact will be better for california to deal with the crisis at the border in addition to of course the money that is already there, dealing with the fire damage. but in the long run, my goodness, what do they expect? the new governor has invited the unwell-world to come and park in
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california. that is dangerous for those who are already ill and for calfornians as well. the president of course has got all of this on his plate. his action is, we'll have a, at least a beneficial effect in mitigating all of those negatives. stuart: got it. >> for everyone involved. stuart: tammy bruce, thanks very much indeed. >> thank you, sir. stuart: good friday to you. thank you. check the markets please. we're down, but we've come off the lows of the day. we were down almost 200. now we're down what, 127. david bahnsen is with us, the bahnsen group cio. david if we get, we're talking about the profit reports that are coming out next week. i heard originally that the expectation was for a 16% gain in profits compared to this time last year. now that has been pared back to a 12% gain. what do you make of that? would that be enough to propel the market a bit higher? >> well, again, it will all come down to how earnings come in relative to what expectations are baked in.
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so it is not going to be about how it does versus a year ago. okay? the expectation gets priced in, because markets are always and forever a discounting mechanism. they're pricing in today what they believe about the future. 12% earning growth year-over-year is a big number. 16% is a bigger number. what is the market really expecting? we'll not know until next week, stuart because it is pretty much financials releasing next week. so to get to a better feel how earnings season will go, you have to get into the some of the industrial countries impacted by this trade war and you have to get into the technology sector as well. stuart: that is coming a little bit after next week. what are you buying right now? >> as we always are, we're looking finding dividend growth companies that are undervalued. their price is not reflecting their future cash flows. the dieseloff put some wonderful companies on sale. we still maintain very high
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conviction as you know around blackstone. stuart: you have to give me some names here. >> giving you real names here, stuart. real names. stuart: blackstone. >> last year all of asset managers, all the companies that manage money, mutual fund companies, alternative companies all got pummeled. one had a total return was positive with its dividend that was blackstone. ticker is bx. they continue to be one of our largest holdings they pay over 7% dividend yield. all from free cash flow. they're growing earnings well into double digits year-over-year. that is the name that we love. stuart: full disclosure, i bought a little blackstone some time ago. i still hold it. give me another name, dividend player, where the dividend may increase? >> the ticker is amj but it's a basket of these oil and gas pipelines. so it is an etf that holds a lot of the mpls, which are the master limited partnerships. the transport, crude oil and natural gas. it's a big play on the trump
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administration commitment to expanding u.s. energy infrastructure. it also has over a 7% dividend yield. that dividend yield is not going to come down. it's a growth of income play. very much like blackstone is. and wildly disconnected from real pricing. now a lot of people say to me, well, oil goes up and goes down. this sector has been kind of out of favor. i say good. stay out of favor. i'm very happy to get paid 7, 7 1/2% in perpetuity while the prices dwell around a lower level. ultimately it will get repriced. we're going, to i believe get a deal with china and exporting liquified natural gas. there we don't have anywhere near enough pipelines in our own country. so to me, amj represents a great value and we get paid while we wait. stuart: 7%, i'll take it. david, thanks for joining us sir. see you again soon. got it. we have a big hour coming up for you this friday.
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amazon loves to disrupt whole industries. now reporting to look to a streaming service for gaming that could be disruptive too. congresswoman alexandria ocasio-cortez was, she wanted a job on the influential tax-writing committee but she was shut out by leadership. i will talk to a reasonable democrat later this hour. his leadership tried to rein in the far left? looks like it because it is their problem. a college professor in wisconsin making a contract with students. if you can't handle free speech get out of my class. whoa, don't you love that we'll talk to that professor. you're watching the second hour of "varney & company." ♪ this is huntsville, alabama. aka, rocket city, usa. this is a very difficult job. failure is not an option. more than half of employees across the country
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stuart: we were down 190. now we're down 140. we'll take it. general motors, came out with a upbeat profit outlook. that helps. so too does expansion for whole fleet of vehicles into china. the market loves it. up 8% on gm. which reached $37 a share. activision blizzard, cutting ties with the studio behind the popular destiny games. we're showing awe two-day chart. because the stock was down 6% on the news yesterday. down another, whopping great drop again today. that is a drop 1/2 there. activision blizzard. still on the gaming industry. amazon reportedly developing a streaming service for rid yo games. that sounds like a big deal to me. anything amazon does is a big deal. brian hammer is with us, gamer world news host. welcome, brian. amazon dominates just about everything it gets into. if it gets into streaming games
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will it dominate that. >> you have to think so. thank you for having me on, stuart. with amazon, one of the biggest things, they're already a giant in their own markets with streaming video and marketplace. so get into streaming games, the next step to, get into the 100 billion-dollar industry. also amazon can offer what other platforms can't, cloud storage they have for online multiplayer game. stuart: i'm not really familiar with this market, what i understand it, streaming videogames at the moment is playstation and xbox arena, is that correct? >> yes. there is also pc as well. but i think there is a lot of different companies that are working on a streaming platform. we know that microsoft is doing it. google is doing it. sony is working on something as well. because they all see that there is this power and huge opportunity in streaming games and taking gaming to where, you know, different companies have
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taken video services with streaming, netflix and amazon prime video. stuart: can i sort something out? because, this is not my area, but as i understand it, with twitch, you can watch other people play games, but with this potential new streaming service from amazon, they will stream the games that you play. have i got this right? is. >> absolutely. and amazon actually owns twitch right now. this could be a market shift in amazon not only offering the lal platform, being twitch, to watch games, which is a huge, profitable, thing for game us to do, but they will offer games themselves. it's a one-stop shop for those that want to game, stream or watch. stuart: i thought it was a big deal. you confirmed it, thank you very much. the creator of "fortnite",
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creator got a f from north carolina better business bureau. why? >> they did. they're going by metrics they used for every business that they have had over the past few decades but if i'm being honest with you f from bbb is something epic games will brush off their shoulders, they have with "fortnite" alone, 125 million players. according to the better business bureau, they have gotten 279 complaints over the last three years. that is less than 1,000th of a percent of their players. i'm sure in their minds they're doing something right. stuart: what were the complaints about? you get addicted to it or something? >> i know i can. but i think most of the complaints that i have read about have been either glitches in the game itself or a few of them actually have been about non-refunded charges that people have gotten. or just being kicked off the game. i think they look at that epic games, as, these are things that
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happen and we're trying to work to fix them but at the same time, if they're getting, like i said less than 1,000th of a percent of their players playing about this, their streaming service, their gaming service must be on the up and up. stuart: it is not a problem, is it? not a problem. >> not too much to them or their investors. stuart: brian, thanks for joining us, thanks for straightening me out. >> thank you, stuart. stuart: see you soon. two sports stories for you. number one, british tennis star andy murray announced he will be retiring this season because of constant pain of a hip injury. almost in tears at the press conference. tim tebow, professional football player, outfielder for minor league system. is engaged. he is engaged to the demi-leigh nel-peters, 2,000 misuniverse. he made the announcement on
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instagram. he is off the marriage market. so big we're sending ashley back to london. ashley: here we go again, groundhog day. yes indeed. stuart: i think, i think that vote goes down to defeat. but then what happens after that? ashley: good question. stuart: in our next hour, nigel farage will answer the question. check the big board one more time. stablizeing with a loss of about 150 points, down about .6%. more "varney" after this. ♪ (indistinguishable muttering) that was awful. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches?
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stuart: price of gold this morning is at 1290, up a couple bucks as of this morning. the price of oil today is down
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we're off 1.6%, back to $51 a barrel. the price of gasoline moved up a traction for second day in a row. we're at 2.24. that is the national average. >> into let's get to the government shutdown. at midnight tonight it becomes the longest in history. they passed a measure to give them back pay. ashley: part of the shutdown, working no pay, they are guaranteed back pay. those federal employees, deemed non-essential on furlough requires an act of congress for them to be guaranteed back pay when the government reopens. this bill did that. the senate, mitch mcconnell, called mr. trump, said this is what we want to do. absolutely get it to me. i will sign it. stuart: done deal. i understand some federal workers, they're getting second jobs to make ends meet? susan: 800,000 furloughed. federal employees trying to make
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ends meet at this point, getting second jobs as uber drivers. looking at grocery stores. they're scrimping. taking out loans, saving, looking for work because they're not getting their paycheck. it has been 21 days. they are concerned if it goes further, we might see 99-month expansion of jobs gains in the u.s., might be coming to an end on february 1st. stuart: it will affect the numbers. thank you, susan. let's get to sears. they're getting another lifeline. they got one yesterday from eddie lampert, but honestly does anyone go to sears that much anymore? susan: do malls even want them? they say no. stuart: that's right. i saw that story. some malls don't want a sears there. susan: don't bother. stuart: we'll see how long that company can hang on. and speaker pelosi, senator schumer not backing down. president trump says china is a more honorable negotiator than they are. is that bad for the democrats? i will ask that question.
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more "varney" after this. ♪
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♪ i wanna hold your hand ♪ stuart: back to the well, are we not? i like this song. you remember this one. >> i do, yeah. stuart: you like it? >> i did then. i do now. stuart: all right. you stay.[laughter] i haven't got time to ask anybody else. check -- we're down 186 points on the dow industrials. that is a news story, ladies and gentlemen. we're a financial program, down .78%. i will bet you the big tech is all down, yes it is. apple, amazon, facebook, alphabet, microsoft, all on the
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downside. apple is back to 152. got it. now we're down almost 200 points. look at that left-hand side of the screen. we're down. check, ww -- formerly known as weight watchers. downgraded to a sell at jpmorgan. weaken rolement after the new year. that is your resolution time. weaken rolement. stock is down nearly 7%. >> >> yum brands, that is the parent of kfc, pizza hut, talk cobell,down grade at goldman sachs. retailers some of them didn't do that well during the holiday season of the macy's, victor a secret, l brands, kohl's all struggling. better fleckinger, manager of strategic resource group. those three, what happened? >> retail ice age, all three. there will be survivors. they will thrive. macy', 7th largest on line, retail train wreck under the christmas tree in part from
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fed chair jerome powell scaring people with the stock market in december, slowed spending significantly. stuart: it was a terrific holiday selling season. >> a record. macy's to its credit was up 1.9%. stuart: why is it down 18%. >> the analysts are mensa society morons, they estimated macy's would be up 4 or 5%, instead of two. stuart: is that it really, analysts said they will go up four or 5%. they didn't, they went up 2%, so down they go 18%. >> that's it. stuart: that is ridiculous. i'm sorry, i find that absolutely ridiculous. where is macy's now? down some more. >> again. stuart: analysts again? >> analysts again, macy's stock, huge dividend. macy's will be the winner from the sears liquidation that will come inevitably. and macy's is beneficiary of the carson's chain of six stores in
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the midwest. they liquidated. macy's will be big beneficiary. penney's is struggling. macy's survivor, last one standing and giving. stuart: you don't give recommendations on stocks. i don't think you do. >> sometimes. stuart: would you buy macy's at this current price? >> i would. there are very few safe harbors. sprout's farmers market. killing whole foods owned by amazon. >> susan want as go. susan: mastercard, $850 billion was spent over holiday period, best in six years. are you saying they weren't going to macy's, kohl's and target. >> they were going to macy's and kohl's. macy's up 102%. kohl's up 105%. susan: does that sound like disappointing sales to you. >> dick en, best of times, worst of times. "tale of two cities." still very good times for macy's and colds, rest of retail, accelerating price age.
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400% over storage, to 150% overstored in bricks and mortars. they're selling retail stocks, instead of picking few of ones that are positive, your points, susan, macy's kohl's, amazon, walmart, costco, bj's, people buying on price and promotion. retailers good at both like those are still winning. stuart: cue the organ music please. we'll talk about sears. they kind of got brought back to life, i think it was a bankruptcy judge a 5 billion-dollar move into sears by eddie lampert. okay. just cut to the chase. when are they going out? >> they should be going out monday. bankruptcy judge, bob drain has really regrettable record of letting the bankruptcy firms others run roughshod over creditors. lampert is lifetime loser. a guy who is negative on same-store sales for 50 consecutive quarters should not
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be allowed anywhere near this company, and it is george orwellian, 1984. the last sears store standing here in the u.s. and canadian border. plenty of merchandise, shoppers, so scared they're not shopping. stuart: they're gone? >> yeah. stuart: right. what about replacing sears stores with whole foods stores? >> not working because whole foods already tried converting the bon-ton department stores. the store was supposed to do 1.2 million a week. it is doing less than 300,000 a week. colleen wegman, and joe dashes and dashes eating them alive on niagra falls boulevard. only whole foods amazon combined store. should have spectacular success. department store conversion not working. stuart: sometimes you say so much i find it hard to follow. you got it all in, lad. thank you very much. better, thanks a lot. >> thank you. stuart: i issued forth with'd tomorrow at the top of the hour. here is what president trump had to say about negotiating with
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the democrats. roll that tape. >> i find china frankly in many ways to be far more honorable than crying chuck and nancy, i really do. i think that china is actually much easier to deal with than the opposition party. stuart: i hope you were watching because he said that about this time yesterday. we had it live on the show. i don't know what you thought about it, but it was kind of provocative. let's bring in former clinton pollster, fox news contributor doug schoen. the president said, chinese folk, the chinese people, on trade, more honorable than pelosi and schumer. what do you think of that. >> i'm a democrat first. they have violated law of the sea. stuart: talking about negotiation. >> we're talking about a culture. people who enslaved their own people. they have engaged in cybersecurity violations. and stealing our intellectual property. stuart: you're hot on the collar
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on this, aren't you? you do knot like the president saying that? >> i do not. i'm an american patriot believes in standing up for american values, to equate political leaders i disagree with to international outlaws is wrong. stuart: schumer and pelosi will not negotiate when the border wall. >> right. stuart: they won't negotiate, absolutely will not negotiate. >> right. stuart: which means, they're not going to get a deal for the dreamers. the dreamers are left out in the cold. >> i want a deal. stuart: where is the honor in that? >> i think it is wrong. stuart: refusal to negotiate is dishonorable if you're shutting out these millions of people and -- >> i wish the president himself would go back and offer that deal. and be similarly honorable and say dreamers, for a wall. i'm for that. for democrats he has not said it not now. stuart: he has said it in the past. don't mess around with woods with me. >> i'm not messing around with words. it is not on the table. stuart: you know pretty well president trump in the past let
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in x number of dreamers, 1.7 million or something like that. ashley: right. stuart: let them in. he would negotiate on that basis. ashley: yep. stuart: and the democrats, your guys, turned him down. >> he said that. then he took it off the table. it is not on the table now but it should be on the table for the democrats and republicans. i approach this not as a partisan but as an american patriot who puts our country first. first, foremost, always. stuart: okay. got it. alexandria ocasio-cortez -- >> please, stuart. stuart: okay. she didn't get a spot. >> good. stuart: on the ways and means committee. >> she shouldn't. stuart: tax-writing committee. >> proposed 70% tax for those who are earning over $10 million, potentially screwing up the entire tax code. stuart: tax the rich. what is your party all about? >> it is wrong on that. completely wrong. i'm for low taxes. the reason the president the president -- stuart: show me another democrat for low tax. >> there are not many of us.
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stuart: show me one? show me one. >> i don't have many. stuart: thank you. >> the president elected a democratic house eliminating i said on the show state and local taxes. stuart: what is going on here, you have insurgent movement in the democratic party rapidly taking over. >> i agree. stuart: they are radicals. they are socialists. >> right. stuart: they have taken over your party. >> i completely agree. look at those who won midterm elections, largely moderates. they're trying to take over. they're wrong. but at least they're americans. they're not chinese or russians. stuart: playing nationalist card on us? >> no i'm paying patriotic card. i stand up for the values you hold dear, i hold dear, freedom, liberty and democracy. i hold up for them now and forever. stuart: will you come back on this program some point next week, name two democrats who are for lower taxes? >> if you will have me i will do it. stuart: okay. i got to know their names. >> you will know -- stuart: make them national
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celebrities. they can't be some obscure person from wherever, that i never heard of. >> that's fine. got a deal. if i can't, i'll own up to it and i will fess up. stuart: we'll do this, right? got it. not sure which day we will do it. >> whenever. i'm always available. stuart: now this, new york city's mayor, bill de blasio, listen up, doug -- >> i am listening. stuart: de blasio says there is plenty of money in the city paying for his progressives ideas, giving money to illegals. he said the money is in the wrong hand. did you get that. in your hands the wrong hand. >> i know. that is why i'm going to florida. i'm just there. >> gave money away to amazon and not macy's, running macy's and ibm out of their own state and headquarters. stuart: we talked about the many headwinds apple is facing right now. our next guest says when it comes to china, there is a huge new threat to apple that would
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be a 150-dollar chinese-made smartphone. susan is shaking her head. we'll bring her into the discussion. more "varney" after this. ♪ [ phone rings ] hey maya. what's up? hey! so listen, i was taking another look at your overall financial strategy. you still thinking about opening your own shop? every day. i think there are some ways to help keep you on track. and closer to home. i'm all ears. how did edward jones grow to a trillion dollars in assets under care? thanks. by thinking about your goals as much as you do. we used to play so beautifully together. now... we can barely play anything... even cards with the girls. (vo) if you have bent fingers and can't put your hand flat, talk to your doctor.
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future americans will be able to cast vote the on their phones. roll. >> this is not theory. we did it in the west virginia election for deployed military for 24 different counts. they are able to vote. they are defending our lives. think mail their ballot, shows up a month later from kandahar, gets thrown in the cash. we were able to bring them technology and funding to offer to deployed military. four different security audits. they came back clean. now we're expanding around the country. ♪ . nah. not gonna happen.
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that's it. i'm calling kohler about their walk-in bath. my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please... [ finger snaps ] hmm. the kohler walk-in bath features an extra-wide opening and a low step-in at three inches, which is 25 to 60% lower than some leading competitors. the bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. kohler is an expert in bathing, so you can count on a deep soaking experience. are you seeing this? the kohler walk-in bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage. everything is installed in as little as a day by a kohler-certified installer.
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and it's made by kohler- america's leading plumbing brand. we need this bath. yes. yes you do. a kohler walk-in bath provides independence with peace of mind. call... for a free kohler touchless soap dispenser with in-home quote or visit for more info. stuart: we're down 130 points. stablizeing. we're down just half a percentage point. better take a look at tilray. that is the canadian cannabis company. huge gain today. 22% up. why? because a private equity firm holds 75 million shares of that stock says, they have got no plans to sell when a lock-up expires next week. now that is a vote of confidence in tilray. up it goes, 22%. now this. this could be another program for apple in china. a big chinese phone-maker has announced a new phone and get
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this, it only costs $150. john meyer is with us, transpire ventures general partner. is this real competition for apple in china? >> i think it is real competition for apple in china and i will give you the reasons why. at this point in china, even beyond china, look at india, for example, apple has 1% market share in india. and if you asked the reason, asked why to anyone in china or india, they cite one thing and that is the price of even the most entry level iphone. and so where my concern lies is that if apple doesn't figure out a way to get a lower-priced iphone on the market in places like china and india, any possibilities of apple making way in their revenue through what we call their services like icloud and apple music, that is just not even possible. if apple doesn't even have a phone that people are using, in india and or china. with the biggest reasoning cost.
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stuart: is this a big shift in the smartphone business? the shift away from premium pricing, high profit margins, towards much lower priced, almost a commoditized item? is that, is that a, am i right in saying that is the shift? >> you are right. however the problem here that you know, frustrates even me as a long-time apple fan, is this is the shift that started i mean, five years ago. i mean we've been, on apple earnings year after year, we've been hearing a constant talk about the need to introduce significantly lower-priced budget iphones in places like china. and all apple has really been able to do, step down just a little bit, let's say a 7 or 800-dollar phone but obviously you can't compete in xiaomi is
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introducing a 150-dollar device looking like apple's top of the line phone with a 48 megapixel camera, most likely on 5g. so the landscape is completely way more competitive at this point. like i said i think on this network a week ago i just, my position is, i love apple, but i feel like they have again dramatically underestimated what china is capable of and what their companies in china are capable of in the mobile phone sector. stuart: what a story. who would have thought. apple king of the hill, but maybe not. i got one more for you, john. and this is a big picture section. several times on this program, people say netflix is the big technology high-flyer this year, it will really take off. i see raymond james, ubs are announcing upgrades on the stock today and it is up 4%, $13 higher. is this, netflix, the new big-time tech winner of this year? >> i think it is at a minimum within the top three biggest
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tech winners and biggest stock winners coming this year and especially into 2020. and i will cite a reason why, that i don't believe is actually talked about a whole lot. one of those reasons is the fact that over the next two to three years consumers are getting more time on their hands to watch compelling video content. netflix is clearly skyrocketing on this and the reason why humans in this country are going to be getting more time to watch services like netflix thus, increasing their revenue is because as we get into the, this transition into self-driving vehicles, driver assist vehicles, on the road all over the place today, the bottom line is that the experience that let's say a new york hears in commuting on the subway where you can watch your ipad for the entire commute, that will slowly begin to apply to every citizen in america with
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self-driving car technology over the next three years. and the one thing, again, people will be doing, when they're just sitting in their commute, not having to worry about driving around is watching content like on netflix. i think that is a, understated, you know, reason to see even more netflix growth beyond what is projected. stuart: you're right, john, that is, i have not heard that reasoning before but it makes sense, i got to say and the stock is way up today. john meyer, an original thinker, whoa, what are you doing on this program? thanks for joinings us, john, we appreciate it. that wasn't a slam at anybody. just saying. one professor had enough of the pc culture. he is telling his students, if you can't handle free speech you can drop my class. boy, is that refreshing. we'll talk to that professor next on this program. check the big board real fast. we're down 140. that is half a percentage point off the dow industrials.
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stuart: what's this? stability?
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we're still down about 140 points. not much movement there. we're down about half a percentage point. now this, special guest, associate of professor of english at the university of wisconsin oshkosh. on the first day of class he asks his students to drop the course about they're offended by certain ideas or beliefs. come on in, my hero, professor duke pester. professor, can i call you duke, is that okay? >> duke is great, thank you. stuart: you ask, you make your students sign a contract at the beginning of the year, right, if you don't sign, if you don't sign, don't take the class, is that it? >> pretty much. we reached the point now where students have this weird idea that they can shut down any book, they can censor any comment in class, they can completely redistrict any class simply because they're offended by something. so my view, let's get them out t of the class the first day. if you're that kind of a student, we're better off
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without you. i give them long list of things if they're offended by they need to drop the class. stuart: give me some of the things. >> free speech. positive representations of christianity or religion in general. positive representations of free markets or capitalism. traditional gender identities. i teach literature that is from shakespeare's period or on back. i teach old literature. inevitably these kids are only going to encounter christian world view in western culture. they will only encounter traditional gender roles. i tell the kids, their cultures existed before you were born. their world is not our world. if you can't set aside contemporary buys understand their culture, you can drop the class. stuart: the whole point after university education is consider altered ideas from your own. all you're doing restoring basic concept of what a university should do. that is where i'm coming from. >> bingo.
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that is exactly right. think about how the universities preach absolute tolerant views different from your own. when that applies to traditional christian cultures or ancient cultures that believed in male, female marriage or entire history of the world up until recently, that saw male and female as actual things, now in the progressive university because we're pushing all those agendas, when you encounter traditional marriage and shakespeare that is microaggression to these kids. when you encounter positive representations of free markets and capitalism, this offends my marxist sensibility. i don't have time for it. it is anti-education to give in to these kind of imperatives. stuart: professor, you are so right. you are so right. what a pleasure to have you on this program. i do hope you can come again and lecture to the world about good stuff. we appreciate it. thank you, duke. >> anytime. stuart: thanks very much. i was lost for words. i really was.
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susan: rare, rare. stuart: that is just great. now this, democrats may have found more part of a new platform for 2020. the great, the green new deal. getting broad support. the can dismiss it. don't do that. might be popular. and i treat my mbc with everyday verzenio- the only one of its kind that can be taken every day. in fact, verzenio is a cdk4 & 6 inhibitor for postmenopausal women with hr+, her2- metastatic breast cancer, approved, with hormonal therapy, as an everyday treatment for a relentless disease. verzenio + an ai is proven to help women have significantly more time without disease progression, and more than half of women saw their tumors shrink vs an ai. diarrhea is common, may be severe, and may cause dehydration or infection. before taking verzenio, tell your doctor if you have
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stuart: one more plank to the democrats' campaign platform for 2020. here comes the green new deal. it is winning broad support on the left, including from some likely presidential candidates. they will put climate change front and center in 2020. climate change. first of all, what is this green new deal? well, broadly speaking, it is a tax and spend plan on a gigantic scale, much higher income taxes, new taxes on oil and gas companies. they think it would raise trillions of dollars which would then be quote, invested by the
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government in low carbon infrastructure development, end quote. we're talking industrial strength government spending here, plus there is a grab bag of add-ons. a much higher minimum wage, a guaranteed job for all, rebates for the poor to fix inequality, 100% renewable energy, et cetera, et cetera, et cetera. senator elizabeth warren supports the idea of a green new deal. she's running for president. senator cory booker, he, too, has endorsed it. senator bernie sanders, he's endorsed it. he claims, he says climate change is the biggest crisis of all. beto o'rourke is supportive of the concept. representative eric swalwell, california democrat, another potential presidential candidate, he's excited by the green new deal. he too supports it. you know, it would be easy to dismiss this all as just pie in the sky dreaming with no chance of winning voter approval.
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not so fast. the left is playing this as a jobs program and an anti-poverty program, not doom and gloom, the planet is dying, that kind of stuff. no. full employment and free money. that's the spin now from the younger generation of democrats who no longer see socialism as a problem. and that in itself is a problem. the third hour of "varney & company" is about to begin. stuart: you heard my editorial there. i need reaction to it. let's see what kind of reaction i'm going to get from fox news contributor, laurence jones. all right. where am i going wrong? >> you got it right. this time you got it right. here's the deal. if i could ever think of a plan that's going to bankrupt america and crash our economy, that's the deal. i think a lot of those democrats
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know that it absolutely won't go forward, it can't get support from not even members of their own party but both branches of government and the president would never sign a deal like this. but the way the democratic party is going, they have to please the base and this was the opportunity to highlight all the social justice issues, green deals, minimum wage, to please that base. never going to get passed ever. stuart: yet, you know, socialism is not discounted. you're a youngster. you're in your 20s, for heaven's sake. lot of people your age have this pie in the sky dreaming about socialism. it's a wonderful thing. they would be attracted by this. >> you know, i covered campus reform all the time, these young people and where they're going. look, here's the deal with the young people in believing this. they don't have an opposing view on this. this is what they are being taught on the college level, so they believe this stuff is just fact. they don't understand about capitalism, they don't understand about the fall of all these socialist countries so i think it's a failed opportunity for republicans and educators
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like the one you had in the last hour to educate these students about these reckless policies. stuart: okay. i have to talk to you about the shutdown and the potential for the president to declare an emergency on the border. what you think he should declare emergency to get that wall built? you're from texas. >> well, this is why he should do it. because we're not going anywhere. i blame the media partly, because this is an opportunity for the media to nail democrats and say you guys were for it in the past. let's not get into the debate, just let us know why you decided to change your mind on supporting things the president is supporting right now. number two, the president is going to get some political blowback for these people not being paid at the moment. so the only way he can compromise on this and say look, in order to reopen the government, i have to declare this as a state of emergency because if he fails on this issue, when he runs in 2020, his people are going to say why didn't you get it done when you
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had control of two branches of government. so the compromise now is state of emergency. stuart: he's kind of pushed into it as a last resort. >> he has to do it. he's going to get some fight from both sides. it will be challenged in the court. but i do believe the president will have some ground to stand on when they see video of these people coming across the border, throwing rocks at our border patrol. stuart: can't have that. thanks, lawrence. good luck. now let's get back to your money. check the big board. we have come back nicely. we were down almost 200 points. now we're down about 99. two of our most respected market watchers this week have changed their minds about the market. they were bearish late last year. now they're back in and buying stock. joining us now is a third respected market analyst, jonathan hoenig. he too has been bearish for quite a long time. have you changed your mind? >> the bulls are making a fight here, no question. the market is off to the best
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start in literally over a decade and it's encouraging for the bulls to see because the first time in many, many weeks, more for example 52-week highs than 52-week lows. this is just an indication that the trend is slowly perhaps trying to form some sort of a bottom. just today, about 12 new highs, six new lows. what i'm noting, however, is what is that new leadership, is it going to be as you talked about in your previous segment, the netscapes -- excuse me, the facebooks, netflix, all the old big tech that led the market the previous time, or is there going to be new leadership emerging and that's where i'm keeping my eye. i also think very quickly, i don't think you should be in a major rush to jump into the market. it's a long year, lot of new trends are emerging. so i'm picking very discriminating, picking individual stocks primarily emerging market and foreign names, because i think those will do best in 2019. stuart: but you are no longer as abjectly bearish, sell everything, as you were a couple months ago?
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>> without question. the market has gone from extremely oversold to essentially i would say fairly valued at this point. i'm not a raving bear but i think you have to be very discriminating and just not reckless. that's why i'm looking at a lot of off the radar screen ideas, emerging markets, latin america, the japanese yen, even some commodities. not the usual names that dominate the s&p. stuart: i have to tell you, most of our viewers would not be investing in the japanese yen or obscure foreign markets. so just develop this theme of the market needs new leadership. tell me what kind of company, what kind of industry, could provide that new leadership? real fast. >> well, one of the names, one of the sectors we talked about that has had some success was we have talked about gold. gold stocks, gold metal, gold mining companies, these have been big winners in the last couple of months. i think primarily because of that weakness in the u.s.
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dollar. you know, that was a trend that unfolded basically for a decade from the turn of the century to about 2011. if we see once again a major weakening of the u.s. dollar, it just means that on average, foreign stocks, foreign investments, are going to do better in your portfolio if that is in fact the type of environment we're in. stuart: gold coins i bought for the grandkids all those years ago will finally pay off? really? >> yeah. indeed. we have had the bull and bear cycles in precious metals and as we talked about, i think this is a bull cycle. stuart: thanks for joining us, as always. see you again next week. >> have a great weekend. stuart: yes, sir. from individual stocks to look at. first off, at & t will stop selling users' location data to brokers, following a report this week that showed how bounty hunters can track phone locations using carrier data. at & t is languishing, though. $30 a share. pays a big dividend. apple plans to release a new cheaper iphone this year. remember, they have had trouble
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selling the existing cheaper model. now they have big competition from a $150 phone made by china. apple is down today, $152. two stories on amazon. it's reportedly considering buying vacant sears stores and turning them into whole foods stores, and it may launch a game streaming service, basically netflix for video games. but the stock is down nine bucks. the brexit vote comes up next week. looks to me like that vote goes down to defeat. okay. what happens then? next, we talk to the man behind brexit. nigel farage is on in a moment. to holiday shopping. target reporting strong sales but other retailers like macy's and kohl's not so much. coming up, we talk to the head of the national retail federation. what does this say about what people are spending their money on? after gavin newsom's victory in california, how does the republican party rebuild?
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he's already introducing free health care for illegals and a tax on drinking water. we are talking to a candidate for the california gop vice-chair position. what happens to the gop in that state? is it still there? from the west coast to the east, new york city mayor bill de blasio says the city has plenty of money, it's just in the wrong hands, he says. mayor robin hood. we will talk about that. of course, the big story today and every day, your money. stay with us. third hour of "varney & company" just getting rolling. nah. not gonna happen.
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executive. he was a marketing director of sales, charged with espionage on behalf of china. he was arrested with a polish national as well, two people arrested. this is interesting. this is a growing story because now more and more countries taking the lead of the united states raising questions over the security of dealing with huawei, and the fear that it's linked to chinese espionage. so there's some big contracts available in europe but each country now looking at whether they want to employ huawei to carry out those contracts. stuart: a big hit on one of china's biggest technology companies. huge company. ash, thank you. let's get to brexit. you're going next week. ashley: i am. stuart: big vote next week in parliament ashley will be covering for us. will it be a yes or no on prime minister may's brexit plan? nigel farage is with us, european parliament member and vice-chair of the pro-brexit organization.
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nigel, looks to us like the vote goes down to defeat next tuesday. you take us through what's next. >> yeah, i agree with that. look, it's the most important vote in parliament for 50 years and some would say the most important vote since 1940, when winston churchill became prime minister. it's big stuff. yet she's going to lose this vote by a massive margin, probably the biggest defeat ever for a government in history. why? because it's a sellout and it's a betrayal. she then has three working days to come back with a new proposition which probably means the 21st of january, at half past three in the afternoon uk time. my guess is she will play for time again, even if there isn't much time left. she will say i'll go back to brussels and try to renegotiate. the reality, in my view, is there is not a parliamentary majority to back up and endorse the referendum result of 2016,
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and if you ask me to put a bet on, i would say we're heading towards a stage where a big demand will come from parliament for article 50 to get extended, namely, we not leave 11:00 p.m. on the 29th of march, but they kick the can down the road for a further six months or a year. stuart: you hate that idea. i know you do. >> i loathe it. i loathe it. i loathe it. absolutely loathe it. i mean, look, if the prime minister stands firm, she's got the legislation in place, there's nothing parliament can do to stop brexit. we would leave on march 29th on world trade organization rules. now, you know, i pray and hope that happens. i just don't believe that this prime minister and her cabinet really believe in brexit. stuart: now, the leave date is, as you say, march 29th. there's lots of speculation that it's going to be a hard brexit, we just get out with no
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agreement, we just leave. a lot of people say that would be a catastrophe economically. what do you say to that? >> yeah, you know, the same people who are saying this were the ones 20 years ago saying unless we join the euro, the city of london will close down, the car manufacturers would leave. it's all the same people. frankly, their threats are about as realistic as all our fears over the millenium bug. it isn't going to happen. you know, we trade with america, on world trade organization rules. china, on world trade organization rules. no deal, no problem. i'm not in the least bit concerned by it and actually, in democratic terms, what leaving with no deal does, it delivers what brexit voters wanted. so it is the only true democratic solution. stuart: i'm going to read you a tweet from president trump and you will be interested in this. the humanitarian crisis at our southern border, just got back and is far worse than almost anyone would understand.
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an invasion. i have been there numerous times. the democrats, cryin' chuck and nancy don't know how bad and because -- and how dangerous it is for our entire country. then you, nigel, you brought us this story from italy. police have arrested 15 people who they suspect tried to smuggle radical terrorists into the country by posing them as asylum seekers. i think you see a link between building the wall and what's happening in italy, don't you? >> well, of course. four years ago, i warned at the start of the mediterranean crisis, isis will use this to get bad guys into the country. a ring was busted yesterday run by a man who was a pro-isis supporter whose aim is to get isis operatives into europe so they can kill us, maim us, and ruin our way of life. what better illustration is there that the primary purpose of government is to protect the citizens of their own country, and i see a direct link between
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the standoff that is going on between schumer and pelosi and president trump over building a proper border wall with mexico. look, americans, please wake up. we through our own stupidity are importing isis terrorists into europe. don't make the same mistake. stuart: well said. well said, nigel farage. hope you can come back and see us again soon. >> i certainly will. stuart: all right. to the markets and first of all, we will check the oil market. it's gone up for ten days in a row, until today, where it is now down 70 cents. $51 a barrel. the price of gas on the rise for the second day in a row but we are still at a national average of $2.24 per gallon. bitcoin, where's that? $3,600 a coin. the price of gold had been edging closer to $1300 an ounce. today it's at $1290, up three bucks. now this. kettle bell kitchen, a company founded by two brothers who make
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healthy meal plans, i want to know what they consider healthy. that's point number one. but get this. the chief shechef is 23 years o and was recently named to "forbes'" 30 under 30 list. he was first recognized at the age of 13 when he appeared on the show "chops." they are on the program today. good stuff. chick-fil-a revealing its top-selling menu item. it is not chicken. what do you think it is? we will tell you after this. ♪ place, the xfinity xfi gateway.
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stuart: now, let's reveal chick-fil-a's most popular menu item. not chicken. waffle fries. they have become so popular, some people have created an instagram profile dedicated to pictures of them. okay. soft drinks, number two. the top-rated chicken product at number three was chicken nuggets. that's chick-fil-a for you. more fast food news. taco bell will begin testing a new 100% vegetarian menu. you think it will sell? no. the chain says it has 38 ingredients that can be combined to create eight million certified vegetarian options.
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young brands, the stock is down on news of a downgrade from goldman sachs. 90 bucks a share right there. we have a panoramic image for you from the far side of the moon. the dark side. pink floyd. the chinese rover known as jade rabbit shot these images. the rover landed on the moon earlier this month. they say look, it likely won't be able to work for long because of the harsh conditions there. but those are pictures from the dark side of the moon. look at this. one tech company has unveiled the world's first mobile pet cam. ashley: finally. stuart: it's made by vava. lets you follow your dog or cat around the house when you're not there. it's equipped with two-way audio so you can hear and speak to your pet. there it is. that's the camera on the floor, you see. follows the pet around so you can see it, talk to it. ashley: that would freak my dog out. stuart: it's got a collision detection system so it can follow around without bumping into things.
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it's going to pounce. i wish you would. a check of tech stocks. shortly we will talk to ray huang, who picked specific winners and losers and will share them with us. right now, all the big techs are down. holiday shopping. target reported strong sales but others like macy's, kohl's, not so much. we are talking to the head of the national retail federation momentarily.
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stuart: you know, maybe i'm crazy, but there's an element of stability here. on the downside. we have been up and down a couple hundred points all the time. now we've stabilized with a loss of just over 100 points. we have been that way for much of the last couple of hours. there we are, down 113. that's about a half percentage point. our next guest is a big tech watcher. been on the program frequently. the techs that he likes are on your screen now. that would be netflix, amazon, microsoft and alphabet. he likes these.
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ray is back, consolation research founder. ray, i want to start with netflix. i know you like it. lot of people say that's the next big booming tech stock. how high's it going? >> we think about $350 and part of the reason is they killed it during the holiday season. "bird box" and the next version of "black mirror." all those shows drove more subscribers. what we are looking at is subscriber growth. they may get to the 150 million by the end of '22, a huge number for them. we are seeing that piece. stuart: okay. move on to amazon. i know you like it. it's been pretty flat to down slightly recently. is it going to go back to $2,000 a share? >> i think so. by the end of the year. part of it is because they have got more than one business model going. they have got the commerce, they got the aws cloud piece that's growing as probably their biggest cash cow, but then you saw that their advertising, they
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will actually start taking market share from facebook and google on ads and then we also saw the fact that earlier in your segment you were talking about amazon taking the whole foods stores from sears. people don't realize they are getting into the gaming business and will also get into other areas around commerce and payments. so all those things are happening in the background. stuart: microsoft, full disclosure, i do own some microsoft stock. it's now about $103. is it going back to its old high of about $116? >> yes. i think it's going to head there. part of the reason is of the fangs, microsoft is the most diversified portfolio. it's not just in a hardware device or in search or in commerce. they've got a very well-balanced portfolio between business and consumer, from the gaming side of the house to what's happening in data and analytics and the cloud to what's actually happening in the core software business office 365. they are one of the most balanced portfolios and they definitely have done a turnaround the last two, three years.
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stuart: deal with google real fast. they have some bad publicity recently. does that affect the stock? >> not in the long term. i think there's some bad publicity about what's going on internally but what's happening with google is the google cloud platform is probably going to be one of their bigger growth engines. what they're doing with the spinoffs, with alphabet to waymo to other areas, they have a lot of innovation at hand. i think if they can keep breaking out of the search business, getting out of the ad business and figuring out their new footing, they will have a good chance getting back to their highs. stuart: now we have the two tech stocks which you don't think much to. i will start with facebook. it's come all the way down from over $200 a share to $143. you don't like it. is it going further south? >> i think it's going to go further south up until about '22. part of the reason is there is still more disclosures about privacy breaches, more disclosures around trust. the main thing is they lost the trust of the consumers and they don't have additional revenue models. what else is happening? facebook at work will probably get a hit because of what people
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are looking at from a trust perspective. but where's commerce? where are all the other opportunities in terms of revenue growth? they haven't built that but they have a big base, two billion users. if they can fix that problem and figure out new revenue streams, i think they will be okay. but it's going to take them at least two quarters to get there. stuart: now tell me, last one, what's wrong with apple? >> the challenge with apple is a market perception. device sales are going down, they overpriced in china, they overpriced in this market. the xr is not doing as well as it should. but the long-term growth is you will see good eps. it will be above 3.92 for their eps. what that means is they are growing services revenue but hardware is still 70% of the revenue so they have to get from 10% to 20% to 30% on the services side of the revenue and when that happens, i think the markets will come back. stuart: got it. you just covered six stocks in about three minutes. pretty good stuff. ashley: lightning round with you. stuart: ray wang, good stuff.
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thank you. see you again soon. i want to move on to retail. first of all, target. they had pretty good, pretty strong holiday sales. the stock this morning is up 1.7%. however, couple other retailers didn't do that well. macy's, kohl's and the parent company victoria's secret that will be l brands, they had slightly disappointing sales. look who's back. president of the national retail federation. matt, welcome back. >> thank you. happy new year. stuart: to you too, sir. i notice a pattern. macy's, kohl's, l brands. they sell a lot of clothing. can i suggest that maybe clothing didn't do that well this holiday season? >> i think what we saw yesterday clearly was a mixed bag. you saw at least one store increase guidance. you saw somebody reiterate, somebody go to the high end, some lower, so it is a mixed bag. i think if you ask something easy like the border wall, security and immigration, get
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right to the hard stuff. stuart: what's that going to do? you want an emergency situation on the border? is that good for you retailers? >> i think what we have is this continuing evolution, the disruption we talked about and department stores are in probably the top spot. stuart: so department stores are under pressure. again, back to this, clothing. it didn't sell that well, did it? >> well, target and kohl's did very well. they have a different mix of apparel. but those two stores both did very well. those brands did well. i think it's more about the journey these retailers are on and different retailers are at different points along this evolution. that's why overall last year you saw comps were up 4.5% for retail across the board. probably 5% in november. we still think we will have a very good holiday season, but we won't get retail numbers next week because the government's closed, so commerce can't give them to us. stuart: okay. >> we will come back in a couple weeks and give you those. hopefully they will be good. stuart: i bet you guys have a beef with the analysts, especially about macy's, because
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the expectation was for x percentage point gain in sales. it didn't quite meet those expectations. they took the stock down 18% in one day. you guys can't be happy about that. >> well, i think the people that are analysts and some that are retail experts would say that it was a bit of an overreaction. i saw a number of folks yesterday make that observation. that's not what we do but i think it's fair to say it was an overreaction, that the fundamentals for consumers remain very, very strong. the holiday numbers, we're still confident we will come in close to our high end range which is almost 5%. stuart: you expected 4.5% to 5%. >> correct. stuart: do you think you can continue in the early part of this year with that kind of sales gain, compared to last year? can you do it, 3% sales gain going forward? >> we haven't put out the forecast for this year but we have every reason to believe this year can continue to be a very, very good year because people are distracted by a lot of the noise out there but as you know, you talk about it all the time, the fundamentals are very good, remain solid for
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consumers, as long as we cannot talk ourselves into a recession by doing something silly. stuart: whatever that might be. matt shay, thanks for joining us. we always appreciate it. >> nice to be with you. stuart: i got a few movers and we are watching them for you. look at general motors, up big, a, because it raised its forecast, b, it's going to start launching its all-new full fleet in china this year followed by south america and mexico. the stock's up nearly 8%. that's a big gain for general motors. activision blizzard, it's cutting ties with the studio behind its popular destiny games. the stock is down big on that news, nearly 10% down. then we have tilray, canada's cannabis producer, one of them, a private equity firm which holds 75 million shares says they've got no plans to sell when a lockup expires next week. that is a vote of confidence in tilray and it's a big winner.
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26% higher. then we have new york city mayor bill de blasio. he says the city has plenty of money. it's just quote, in the wrong hands. we will take him to task. that's a polite word. gavin newsom's victory in california, how does the republican party rebuild? gavin newsom is a democrat. he just walked away with the election. we will talk about that with the person who wants to be the vice-chair of the california gop. how do you rebuild a party which barely exists? we'll be back. ♪
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stuart: big vote on brexit next week in uk's parliament. i will be there covering it. earlier, nigel farage says the result's not going to be good for theresa may. roll tape. >> it's the most important vote in parliament for 50 years and some would say the most important vote since 1940, when winston churchill became prime minister so it's big stuff. yet, she's going to lose this vote by a massive margin, probably the biggest defeat ever for a government in history. why? because it's a sellout and it's a betrayal. she then has three working days to come back with a new
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proposition, which probably means the 21st of january at half past three in the afternoon uk time. my guess, stuart, is she will play for time. again. even if there isn't much time left.
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stuart: bill de blasio is the mayor of new york city. he wants a redistribution of the wealth. that's what he said in his state of the city address. so he brings in all this extra
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money, what's he going to do with all that extra money? deirdre bolton is with us to give us some advice. >> it's not quite advice. i will recap what the mayor said as the "new york post" is calling him mayor robin hood. here's a few things he wants to do with the money. create a public retirement system for the two million workers who do not have employer sponsored savings program. he wants to expand the pre-k for 3-year-olds to 20,000 kids instead of 19,000 kids, extend a program to give them free vision checks and he's partnering to perhaps provide free eyeglasses but i think overall, the idea here is that as you have said in the past, the left is going more and more progressive. bill de blasio certainly not an exception to that rule. there are a lot of people who say listen, he wants to be on a national platform so he's becoming more and more aggressive in new york city so that he can cite a few very specific examples. also for landlords, who are very mean to their tenants, he wants the city to be able to repossess the building and then turn them into nonprofits. we will see if all this gets through.
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these are just some of the talking points in the state of the city he addressed yesterday. stuart: what you're raising is the question of direction. the sense of direction. he's heading straight out there, right out there on the left. that's where this man is going. >> he most certainly is. i think that's why some of his critics are saying this is interesting because when amazon came to long island city and queens, you were willing to give amazon a break so either you love corporations or you hate them but you can't hate them and give them a billion and a half dollars worth of tax breaks. stuart: i'm sure many new yorkers will love this stuff. they're out there. but i don't think the people in the midwest or the south -- >> well, it's also a problem of taxation. if you have the upper middle class and the rich leaving new york because they don't want to be taxed more, then you have everybody's kind of general pool being hurt. stuart: you covered that well. you've got it all in there. i like that. well done. well done. thank you very much. now to the west. california's new governor gavin newsom proposed a tax on drinking water in his new budget. an idea at helping poorer
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communities in the great state of california. he also wants to require all california residents to buy government health care, health insurance, an obamacare staple. joining us is corrin rankin, current state of california vice-chair candidate. your job is to kind of bring back the republican party in the state of california. that's a tough job, because it barely exists. just tell us how are you going to do it, how are you going to make the republican party a valid party again? >> well, we have to be honest. we suffered some major losses this last election cycle and it's time for the republican party to refocus, to unite, and to rebuild. you know, living in california is rough. if you're not living in the silicon valley or hollywood, you're having a tough go of it in california. we have the biggest income disparities, the biggest income
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inequalities in the entire nation. we have a growing homeless epidemic. we have coined the phrase called working class homeless. stuart: we pointed all this out before the election in november, and the democrats still romped away with the whole vote. we knew that you've got the biggest income disparity. we knew that you've got 20%, 25% of your population in poverty. we knew all of that but they still voted for gavin newsom. how do you get those people to vote for you? >> well, you're right, we have to do a better job as a party to let californians know that we are the party that supports working class homeless. we are the party that cares. we are the party that offers solutions and we are the party for you. stuart: why didn't you become the party that supports success and successful people in california? >> we are the party that supports success and successful people in california but with the income inequalities and the
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disparities, it's hard. like i said, if you're not living in silicon valley and you're not living in hollywood, if you're living in middle and central valley california, you're having a hard time. it's really hard for people to get over the hump and become successful in california with the large income disparities that we have. stuart: would you be prepared to come out and say flat out california will no longer be a sanctuary state? >> yes. i would be. i do not support a sanctuary state. many of my friends that i've had for over the years are legal immigrants and those are the biggest proponents of sanctuary cities. stuart: would you come right out and say forget the bullet train, cancel it? >> yes. there are so many things going on in california, we do not need to be allocating our money for a bullet train that once it's built, it's going to be irrelevant. it will be outdated once it's built. stuart: how about green energy measures or environmental measures which put up the cost
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of energy in california? get rid of them? >> i think that it's got to be a personal choice for people. i don't think that we should force californians to buy solar energy panels. those are expensive panels. can't force -- go ahead. stuart: sorry, i'm jumping into you there. i do apologize. >> that's fine. that's fine. stuart: you have a tough job. but we hope you can come back and tell us just how you are going to get that party back on the rails. corrin rankin in california. come back and see us soon, please. thank you very much. >> thank you. stuart: how about this for you. kettle bell kitchen, that's a company founded by two military brothers on a mission to help people change their lives through food. they are on the show today. the head chef is 23. he was recently named "forbes" 30 under 30 list for food and drink. he became recognized when he was 13 and appeared on the show "chopped."
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well, kettle bell kitchen is on the show today. in fact, right after this. ♪ s amazon prime video is now on xfinity x1.
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stuart: we've got two guests and they run a company that healthyzes in personalized, i meal plans. the company is called kettle bell kitchen. two of the founders are army veterans and we have two of
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them, not the founders, we have two of them with us this morning. first of all, that gentleman is joe lopez gallego, he's the ceo. this gentleman isachieve, we enm meal plan and deliver healthy meals directly to your door. stuart: i want weight loss. got a plan for that? >> absolutely. stuart: got a plan for a guy who does pilates? >> pilates. stuart: i'm just asking. >> you could. stuart: if i come to you and say i'm this kind of guy and i do this kind of thing, you will get a meal plan for me, and you will send me the food? >> that's correct. yeah. our website actually makes recommendations and sets up a meal plan that's personalized to your specific goal. stuart: okay. joe, you are the ceo. you are on the business side of this, i take it. >> that's correct. stuart: what's your growth rate like? >> we have been doubling in size every year. people love the food and we have been -- stuart: doubling in size? >> doubling in size. stuart: every year? >> yes. stuart: can you tell me how much it costs?
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>> well, the meals itself cost $10 each on average so it's very inexpensive to provide yourself with proper nutrition. stuart: if i came to you and said look, i'm 70 years old, i like to do pilates, okay, you a greg would cook the food and send it to me? >> that's how we started out. stuart: is it three meals a day? >> most customers get three meals a day. we have a team of dieticians and nutritionists that can provide you a plan for your needs. stuart: kettle bell kitchen. private enterprise. >> private enterprise. stuart: you have not gone public yet. >> not yet. >> we just closed on our series b round of funding this year. we expanded nationally so we are delivering to all 48 contiguous states. stuart: all 48 states. you're the chef. okay. all right. i don't like fried food. >> no, of course not. stuart: thank you very much for joining us today. kettle bell kitchen. good stuff.
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appreciate you being here. thank you. now this. alexandria ocasio-cortez did not get a seat on the tax writing committee. party leadership may be trying to rein in the left. we have that story for you in just one moment. ♪ oh, wow. you two are going to have such a great trip. yeah, have fun! thanks to you, we will. aw, stop. this is why voya helps reach today's goals... all while helping you to and through retirement. um, you guys are just going for a week, right? yeah! that's right. can you help with these? oh... um, we're more of the plan, invest and protect kind of help... sorry, little paws, so. but have fun! send a postcard! voya. helping you to and through retirement. . .
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stuart: two stories concerning congresswoman alexandria ocasio-cortez. number one, she didn't get a seat on tax writing committee. shy wanted it. the open slot went to moderate democrat, long island congressman tom swosi. second item, new york has fined ocasio-cortez's campaign, for not provide being workers' compensation coverage she ran on a campaign for improving working
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conditions. ashley: she is headlines every day. the people in her party are saying enough is enough. she has gaps and doesn't know information. stuart: nancy pelosi hands out assignments. to deny her a place on ways and means committee, tax-writing committee speaks volumes. ashley: we're grateful to nancy pelosi. stuart: pushback against the far left. that is a fact. our time is up. we hope everyone has a wonderful weekend. neil, it is yours. neil: she will probably end up on house financial services when all said and done. and she will report to maxine waters. i don't know if they're out of the proverbial woods there. stuart, have a good weekend. thank you very, very much. we're following that drama on capitol hill who gets assigned to what committee and when. the subcommittees are important. the government shutdown approaching a record, if it continues past midnight tonight, it will be officially longer
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than the one that lasted 21 days back in 1995 when bill clinton and newt gingrich were going at it. both parties has men and women going at it. neither sideshowing signs of budging. we'll get a read on


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